Nobody can say in what direction the troubled economy will take us in the upcoming months (even years), but it’s most likely we’re going to be in dire straits for quite a while.
If you’re a small business owner, you are nearer to your employees and your customers than large companies, and this is to your advantage. Let me present some helpful tips on how to approach your business during unstable times.
1) Think outside the box. When your business declines and the outlook for the future is gloomy, your initial instinct will naturally be to take caution. But try to understand, if you go about it intelligently, risk-taking isn’t a reckless tactic during a bad economy.
You can make changes to your business, even significant modifications and restructuring of your business plan, without breaking the bank.
Be creative; brainstorm new ideas. Maybe try using some of the social websites like YouTube, Facebook, or MySpace to reach out to your local community online. You can focus on developing your local search marketing on the internet search engines or do some joint venture projects with other local merchants in your area. Necessity is the mother of invention! Producing innovative ideas to help guide your company through tough times and poor performing periods is not simply a way to produce practical cost-saving benefits. It can also be a great motivator.
Sure, you might make mistakes. Realistically working through what you can and cannot afford to risk is a constant aspect of running a business.
2) Project a steady, confident manner. We’re facing a recession, maybe a deep one, and people are understandably nervous. It’s not surprising that they would look up to someone who is positive and optimistic, someone who is interested in moving forward rather than fretting and assuming the worst.
Not just your employees but your customers too will respond to this. You may have to make some painful decisions, such as cutting back on staff, or re-working your business in a manner people might find disruptive.
If they if they trust your leadership, it will minimize their anxiousness and help keep morale as high as possible.
3) Keep your employees motivated, and make them part of the solution. It is crucial to maintain morale, and maintain a sense of productivity.
Declining business is troubling for all members of a business, not just the owner. But these troubled times don’t have to be a source of stagnation and despair. Morale can suffer, especially if others have lost their jobs. Make your employees know they are working toward a common goal by asking for their opinions and holding staff meetings to keep them in the loop.
I talked about brainstorming above. Your staff can and should be part of that process. People who feel they have a direct stake in the operation are a great source of ideas.
4) Keep your customers in the loop. Nurturing communication with your existing customer base is of huge importance when the economy is rocky. Remember, they are feeling the pinch just like your company is, and will respect that you feel their insecurity. Use your contact information to stay in touch with your clients, sending updates through email or snail-mail on any changes your business may be making.
Use real time communications like Twitter to stay in touch with your customers (see Twitter for Business for more on Twitter). Regularly update your website with postings about how your company is dealing with the economy and tending to customers’ needs. Don’t act like it’s business as usual if it isn’t.
Respect the intelligence of your customers. You will maintain their trust by acknowledging the realities on the ground. Don’t get me wrong: your customers need to know that despite the changes, your company is still strong and well-functioning, and will remain responsive to their needs.
5) Come up with ways to encourage your customers to stay in business with you.
No matter how well your company is doing, customers appreciate rewards and deals for their continued patronage. It is important that you have some sort of loyalty program that can track and reward your loyal customers. And when they are watching their budgets, special offers to your long-standing customers will mean even more, giving you a competitive edge and encouraging loyalty.
So in conclusion: if you stay positive, project leadership, work with your employees to encourage innovation and morale, and keep in touch with your customers to maintain loyalty and respond to their needs and priorities, you stand a better chance of not only getting through the recession, but thriving in it.
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